SpiceJet tanks after DGCA order

SpiceJet fell 5.35% to Rs 36.25 after the aviation regulator ordered the budget airliner to operate only 50% of its flight departures for eight weeks.

SpiceJet said it has received the Directorate General of Civil Aviation (DGCA)'s interim order dated 27 July 2022 regarding restricted flight operations for a period of eight weeks.

In its order, the DGCA said that the order was issued in view of various spot checks, inspections and SpiceJet's reply to the show cause notice against it in order to have "continued sustenance of safe and reliable transport service".

The aviation body had issued a show cause notice to the airlines on 6 July 2022 after SpiceJet flights were involved in at least eight technical malfunction incidents starting 19 June 2022.

SpiceJet responded saying that "there has been no impact on our schedule following the said DGCA order as, like other airlines, the company had already rescheduled its flight operations due to the current lean travel season."

The company reassured that its flights will operate as per schedule in the coming days and weeks.

SpiceJet said it is confident of scaling up its operations with the onset of the festive season and addressing any concern the regulator may have on priority.

SpiceJet is a low-budget air carrier. On consolidated basis, it reported a net profit of Rs 42.47 crore as against a net loss of Rs 66.78 crore. Revenue from operations rose 34.8% year on year to Rs 2204.68 crore in the quarter ended 31 December 2021.

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